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TABLE OF CONTENTS
Topic Pg.No.
Major Competitors------------------------------------------------ 6
Research Methodology------------------------------------------- 8
Bibliography------------------------------------------------------- 12
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Growth of pen industry in India (Introduction)
Ball pens forms the biggest chunk of the pen market in India and accounts for 72percent of
the total pen market followed by gel pen at 28 percent. The brand leaders in this market are
Cello. Luxor.
Pens market in India recorded a value growth of 82% Survey done by the India’s leading
market information providing company ‘AC Nielson’ on pen market in year 2006. They
come to know that ballpoint pen is still a market leader by acquiring a large portion of the
market. There is a ratio of 72% to 28 % for ballpoint to gel respectively. In urban areas about
10.9 lac. of stores are selling pen, in the selling year of 2005-06 itself recorded a growth of
23%.
The Pen market across the world is Rs 50,000 crore and in India market is only Rs 1500
crores and growing at the rate of 9 per cent. 60% sales come through organized sector and
balance from unorganized. And the luxury segment 95% sales come through grey market.
Most of the luxury writing instruments are picked by on travel abroad. Off this nearly 99% is
sale through stationery and kirana stores. The entire market is disorganized. And the grey
market plays a very crucial role in supplying hi-end, premium writing instruments. The
industry is just evolving and consolidating to supply genuine and quality pens to Indian
customers.
In terms of quality of pens, India ranks amongst the best in the world, well ahead of even
China. But, its export market is abysmally low at Rs 200 crore, while China exports Rs 5,000
crore worth pens every year .
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Indian manufacturers are only now beginning to focus on global markets. The luxury and hi
end pen market is only 1 per cent of the total market size of India i.e. 15 crore. The gold and
the sterling silver range branded Waterman 100 retail between Rs 2, 00, 00 to Rs 4, 00,000.
Indian pen manufacturers see this segment as a potential one in the coming years. Many have
set up a separate division to handle this market segment, as the `free gift-on-everypurchase'
"We noticed this trend about two years ago and it has picked up since then. Last fiscal, our
revenue from this segment was over Rs 10 crore of our total turnover of Rs 80crore. And this
fiscal ,we expect it to almost touch the Rs20-crore mark .We have set up an exclusive division
to handle such orders, as they require personalized service. We estimate this market segment
to grow to Rs 500 crore in the coming years, now; Indian manufacturers are beginning to
reach out to the overseas market. After UK's Pound land tied up with TWPL to have Today's
brand of pens in its chain of stores, we expect to export pens worth $1 million to UK in the
current fiscal,"
Another area that is opening up for Indian pen manufacturers is the trend among overseas
stationary companies to outsource their pen requirements from India. In 2006, about 10.9 lac
stores across urban India take the product in stock at present which represents a distribution
growth of 23 percent within a year (April06 over July’05). The increased distribution has
brought about a phenomenal growth for the pen market of 82 percent in sales.
The sales peaked in the months of February and March owing to exam season and touched
maximum in the last eleven months .There is a consistent month-on-month growth in the
writing instruments industry fuelled by competitive pricing and product innovation. Today,
one can buy a Gel pen for rupees two and can choose from a wide variety of pens - with easy
grip to water-proof ink .Although the writing instrument market is led by well known names
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like Cello,GM (Reynolds), Jineshwar (Montex) etc. Smaller players such as Lexi, Agni and
Elkos for examples have also been able to maintain their share on a regional or select pocket
level.
Major Competitors :
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1)Linc Pen :
Linc pen is India's Prime Manufacturer and Exporter of Ball Pens, Roller Ball Pens and Gel
Pens too
2) Rotomac Pens :
Rotomac Pens Pvt. Limited, belonging to a multi –million dollar turnover VIKRAM
KOTHARI ENTERPRISES, was
incorporated in the year 1992.
3) Montex pens :
Montex has been the first in India to introduce Transparent Ball Pens, Trendy Fountain Pens,
Precision Tips, Gel Ink Pens, Roller Ink Pens, Tank Pens,Rubber Grip Pens and Co-molded
Pens. Montex is recognized as a pioneer in the Indian pen industry with innovations to its
credit.
4) Cello :
Cello is a leading exporter, supplier and manufacturer of Ball pens, Gel pens and refills. The
company took its first step 35 years ago as a low profile enterprise that slowly and steadily
grew to be the indisputable leader in the plastic industry of India .
The makers of India’s favorite Cello pens, are a part of Rs.800 crore (us$ 182mn.) Cello
Group. Lauded as one of the world’s best and India’s largest pen manufacturer’s and well
known for its dynamism and spirit of innovation ,Cello ceaselessly endeavors to bring in the
newest and the best of technology to set new benchmarks in quality and innovates
constantly to blaze new trails in the market place Various pens under cello between Rs3-Rs15
are:
5) Reynolds :
G.M. Pens International Pvt. Ltd. is the exclusive licensee of Reynolds, France, in India and
the SAARC countries Headquartered in Chennai .G.M. Pens has pioneered thewriting
instruments revolution in the Indian market.
Commencing operations in 1986, G.M. Pens introduced to India, international quality writing
instruments, and marketed them under the brand name Reynolds. It was also the first
company to build a brand in a category that behaved more like a commodity till then .Over
the last 20 years, G.M. Pens has invested substantially in building a large manufacturing
base with facilities in Chennai and Pondicherry. A state of the art R&D facility, one of the
most sophisticated in the Reynolds family worldwide, has ensured that the latest in writing
technology is available to the Indian consumers.
G.M. Pens offers the widest range of writing instruments and accessories in the Indian
market. A variety of writing instruments including ball pens, gel pens, fountain pens,
mechanical pencils, markers, are marketed under the brand name Reynolds. A continuous
focus on consistent quality and a constant endeavor to provide quality products at affordable
prices have ensured that Reynolds has been the numero uno in the Indian writing instruments
market. A substantial investment has also been made in establishing the Reynolds brand
name through the mass media, especially through television and press ads, in an effort to
convert the category from a commodity to a brand dominated one. The company's products
are available in three hundred thousand retail outlets across India covered through a network
consisting of 1800 redistribution stockists and 27 main stockists. This is facilitated by a sales
and marketing team of over 300 professionals.
RESEARCH METHODOLOGY
The relevant data i have selected from both Primary and Secondary sources.
Personal Interview
Questionnaire.
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(2) Secondary Data
Research Instrument :
For the collection of information a questionnaire was designed. It included many close ended
as well as few open ended questions.
Sample Design :
Sampling Procedure:
The sampling procedure used was random, keeping in mind proper representations in all
areas.
Collection of Data :
For the study, both primary as well as secondary data was collected. Primary data was
collected by the
………………………………………………………………………………………
a.High during exams b.Stable throughout the year c.when new schemes are introduced.
In Rs._____________
8.In what price range do you think that there is a gap that can be filled?
________________________________
Name:…………………………………….
Occupation(Tick) : student/businessman/service
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Qs1- How frequently you purchase a pen?
Qs2- Which pen strikes first in your mind when you think of buying a pen?
1……………………..
2……………………..
3……………………..
4……………………..
5……………………..
Qs5-Do you use separate pens for signing and writing purpose?
a.Yes b.No
Qs6- If Yes then which pen do you use for signing purpose and for writing
purpose?
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Qs7-Are you conscious of status while purchasing a pen?
a.Yes b.No
Qs8-From where did you come to know about the pen you use?
BIBLIOGRAPHY :
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